Louisiana Life & Health Simulator Exam Revision
Questions with Correct Detailed Answers
A licensee just renewed his license. How much time will pass before he will have to renew it again? -
Answer 2 years
How many eligible employees must be included in a contributory plan? - Answer 75%
All of the following are Nonforfeiture options EXCEPT - Answer Interest only
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust
to work in the business of insurance affecting interstate commerce - Answer Without receiving written
consent from an insurance regulatory authority.
What is the duration of the free-look period for Medicare supplement policies? - Answer 30 days
Which type of life insurance policy allows the policyowner to pay more or less than the planned
premium? - Answer Universal life
If a consumer requests additional information concerning an investigative consumer report, how long
does the insurer or reporting agency have to comply? - Answer 5 days
How often must producer licenses renew in Louisiana? - Answer Every 2 years
Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that
should one of them die prematurely, the other would be financially able to buy the interest of the
deceased partner. What type of insurance policy may be used to fund this agreement? - Answer Any
form of life insurance
All of the following are TRUE statements regarding the accumulation at interest option EXCEPT - Answer
The interest is not taxable since it remains inside the insurance policy.
,All of the following are correct about the required provisions of a health insurance policy EXCEPT -
Answer A reinstated policy provides immediate coverage for an illness.
An insurer conducts business in Louisiana without a certificate of authority. Hundreds of policies are
sold, and claims start rolling in. Which of the following is true? - Answer The insurer will have to pay the
claims anyway.
Which of the following would not be a violation of Louisiana insurance regulations? - Answer Producer C
uses her license to write uncontrolled business only.
All of the following statements are true regarding installments for a fixed amount EXCEPT - Answer The
payments will stop when the annuitant dies.
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following
statements is correct regarding this change? - Answer The death benefit can be increased by providing
evidence of insurability.
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and
exercise the extended term option for the policy's cash value, which is currently $20,000. What would
be the face amount of the new term policy? - Answer $50,000
How long must an insurer retain an advertisement for its long-term care policies? - Answer 3 years
An agent selling variable annuities must be registered with - Answer FINRA.
Which of the following products requires a securities license? - Answer Variable annuity
In insurance, an offer is usually made when - Answer The completed application is submitted.
Under which of the following employer-provided plans are the benefits taxable to an employee in
proportion to the amount of premium paid by the employer? - Answer Disability Income
, What is the term used for an applicant's written request to an insurer for the company to issue a
contract, based on the information provided? - Answer Application
The Affordable Care Act requires all U.S. citizens and legal residents to have qualifying health care
coverage. This is known as - Answer The individual mandate.
Evaluating information that establishes adverse selection risk is the purpose of which stage of
insurance? - Answer Underwriting
Which of the following Medicare supplement plans would be available to a reasonably healthy 91-year-
old female? - Answer A-N
A producer didn't realize that he had committed an act in violation of the Insurance Code. How much
would he probably be penalized? - Answer $1,000
Medicare Part D provides - Answer Prescription drug benefit
Which of the following insurance options would be considered a risk-sharing arrangement? - Answer
Reciprocal
A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that
the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this
change? - Answer Cost of Living Rider
An insured receives a monthly summary for his life insurance policy. He notices that the cash value of
the policy is significantly lower this month than it was last month. What type of policy does the insured
have? - Answer Variable
Which of the following is NOT a feature of a noncancellable policy? - Answer The insurer may terminate
the contract only at renewal for certain conditions.
During replacement of life insurance, a replacing insurer must do which of the following? - Answer
Obtain a list of all life insurance policies that will be replaced
Questions with Correct Detailed Answers
A licensee just renewed his license. How much time will pass before he will have to renew it again? -
Answer 2 years
How many eligible employees must be included in a contributory plan? - Answer 75%
All of the following are Nonforfeiture options EXCEPT - Answer Interest only
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust
to work in the business of insurance affecting interstate commerce - Answer Without receiving written
consent from an insurance regulatory authority.
What is the duration of the free-look period for Medicare supplement policies? - Answer 30 days
Which type of life insurance policy allows the policyowner to pay more or less than the planned
premium? - Answer Universal life
If a consumer requests additional information concerning an investigative consumer report, how long
does the insurer or reporting agency have to comply? - Answer 5 days
How often must producer licenses renew in Louisiana? - Answer Every 2 years
Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that
should one of them die prematurely, the other would be financially able to buy the interest of the
deceased partner. What type of insurance policy may be used to fund this agreement? - Answer Any
form of life insurance
All of the following are TRUE statements regarding the accumulation at interest option EXCEPT - Answer
The interest is not taxable since it remains inside the insurance policy.
,All of the following are correct about the required provisions of a health insurance policy EXCEPT -
Answer A reinstated policy provides immediate coverage for an illness.
An insurer conducts business in Louisiana without a certificate of authority. Hundreds of policies are
sold, and claims start rolling in. Which of the following is true? - Answer The insurer will have to pay the
claims anyway.
Which of the following would not be a violation of Louisiana insurance regulations? - Answer Producer C
uses her license to write uncontrolled business only.
All of the following statements are true regarding installments for a fixed amount EXCEPT - Answer The
payments will stop when the annuitant dies.
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following
statements is correct regarding this change? - Answer The death benefit can be increased by providing
evidence of insurability.
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and
exercise the extended term option for the policy's cash value, which is currently $20,000. What would
be the face amount of the new term policy? - Answer $50,000
How long must an insurer retain an advertisement for its long-term care policies? - Answer 3 years
An agent selling variable annuities must be registered with - Answer FINRA.
Which of the following products requires a securities license? - Answer Variable annuity
In insurance, an offer is usually made when - Answer The completed application is submitted.
Under which of the following employer-provided plans are the benefits taxable to an employee in
proportion to the amount of premium paid by the employer? - Answer Disability Income
, What is the term used for an applicant's written request to an insurer for the company to issue a
contract, based on the information provided? - Answer Application
The Affordable Care Act requires all U.S. citizens and legal residents to have qualifying health care
coverage. This is known as - Answer The individual mandate.
Evaluating information that establishes adverse selection risk is the purpose of which stage of
insurance? - Answer Underwriting
Which of the following Medicare supplement plans would be available to a reasonably healthy 91-year-
old female? - Answer A-N
A producer didn't realize that he had committed an act in violation of the Insurance Code. How much
would he probably be penalized? - Answer $1,000
Medicare Part D provides - Answer Prescription drug benefit
Which of the following insurance options would be considered a risk-sharing arrangement? - Answer
Reciprocal
A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that
the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this
change? - Answer Cost of Living Rider
An insured receives a monthly summary for his life insurance policy. He notices that the cash value of
the policy is significantly lower this month than it was last month. What type of policy does the insured
have? - Answer Variable
Which of the following is NOT a feature of a noncancellable policy? - Answer The insurer may terminate
the contract only at renewal for certain conditions.
During replacement of life insurance, a replacing insurer must do which of the following? - Answer
Obtain a list of all life insurance policies that will be replaced
